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Wednesday, March 30, 2011

Sprint (S) Should Focus on Self, Not AT&T (T)

Sprint (NYSE:S) seems to be losing its focus on the proposed deal for AT&T (NYSE:T) to acquire T-Mobile, fighting hard to influence the merger not to be allowed to go forward.

The problem for Sprint is even if the deal isn't allowed to go ahead, how does that help them if after the smoke clears they still have to deal with the same issues they faced before the bid by AT&T.

Sprint said in a press release that the merger "would reverse nearly three decades of actions by the U.S. government and the courts that modernized and opened U.S. communications markets to competition."

That would be more convincing if Sprint was in a more competitive position. But since they're struggling to find themselves, it's hard to see why the deal shouldn't go through from that perspective, as if it doesn't, they would still have to compete against the two entities.

It's there they must find the answer, not in worrying about what its competitors are doing that they have no control over.

When measured against lobbying spend, Sprint is also way behind AT&T, making the time and effort spent on the actions dubious at best, and unlikely to succeed.

Instead they should focus on growing and innovating their way out of the challenges they face; something they'll have to do either way.

Sprint closed Tuesday at $4.62, falling $0.16, or 3.35 percent.

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